Early green shoots of economic revival visible in May, June: Finance ministry report

NEW DELHI: The finance ministry in its macroeconomic report June 2020 has stated that readings of high frequency indicators in India have cited emergence of green-shoots in the economy for the month of May and June. The report comes as the country entered the second phase of unlock (Unlock 2.0) to revive the economy that has been battered by the Covid-19 induced lockdowns.
The report said that the government of India and the Reserve Bank of India (RBI) have taken prompt policy measures -- both short term and long term -- in a calibrated manner to reinvigorate the economy at the earliest so as to provide immediate relief to vulnerable households and firms.
"Early green shoots of economic revival have emerged in May and June with real activity indicators like electricity and fuel consumption, inter and intra-state movement of goods, retail financial transactions witnessing pick up," the report stated.
The consumption of petroleum products -- a major indicator reflecting consumption and manufacturing activity in the country -- increased by 47 per cent from 99.37 lakh metric tonnes in April to 146.46 lakh metric tonnes in May. In June, growth in consumption of petroleum products is expected to be still higher after one month of Unlock 1.0.
In addition, electricity consumption has continuously improved in the last three months, total assessable value of e-way bills picked up by a massive 130 per cent in May as compared to April, railway freight traffic improved by 26 per cent in May. Average daily electronic toll collections have also increased from Rs 8.25 crore in April, 2020 to Rs 36.84 crore in May, rising more than 4 times.
"The commitment of the government towards both structural reforms and supportive social welfare measures will help build on these ‘green shoots’. The resolve for ‘Atmanirbhar Bharat ’ will be strengthened with the collective effort of all stakeholders and contribute to rebuilding a strong vibrant Indian economy," the report stated.